View
1
Download
0
Category
Preview:
Citation preview
1010101101010101011010101010100101110101010101001011101010101010101001011100101010101011010101010111101010101010101001011100101010101011100101110101011010101101010101011010101101010101011010101101010101101010101011010101001011101010101010101001011100101010101011100101110101010101010100101110010101010101110010111001010101010111001011101010101010101100101110010101010101110010111010101010101011010101101010110101010101101101010110101011010101010110110101011010101101010101011011010101110110101010101101101010110110110101010101101101010110110110101010101101101010110110110101010101101100010101011011010101101101101010101011011011011011010101010110110010110110101011011011010101010110110010101011011010101101101101010101011011001010101101101010110110110101010101101100101010110110101011011011010101010110110101101101010110110110101011011010101101101101010110110101011011011010101101101010110110110100101011011011010101101101010110110010101101101101010110110101011011001010110110110101011011010111011010101101100101011011011011010101101100101011011011011010101101100101011011001101101101101010110110010101101101101101010110111101101010110110010101101101101101010110110010101101101101101010110111011011010101101100101011011011010101110110110101011011001010110110110101011101101101010110110010101101101101010111010111011011010101101100110101110110110101011011001101011101101101010110110011010111011011010101101100111010101101100110101110110110101011011001101010110110011010111011011010101101100110101011011001101011101101101010110110011001101010110110011010111011011001101010110110011010111011011001101010110110011010111011011001101010110110011010111011001101011101101100110101011011001101011101100110101110110110011010101101100110101110101100110101110110110011010101101100110101101100110101110110110011010101101100110101101100110101110110110011010101101100110101111001101011101101100110011010111011011001100110101110110110011001101011101101100110011010111011011001010101101100110101101100110101110110101010110110011010110110011010111011010101011011001101011011001101011101100110110011010111011001101100110101110110011011001101011101100110110011010111011001101100110101110110110011010110110011010111011010101011001101011011001101011101101010101100110101101100110101110110101010110011010101011001101011011001101011101101010101010101011001101011011001101011101101010101010101011001101011010101011001101011011001101011101101010101010101011001101011011001101011101101010101010101011001101011011001101011101101010100011010111011010101000110101110110101010001101011101101010101001101011101101010101010101011001101011011001101011101101010101011001101011011001101011101101010101011001101011011001101011101100101101100110101110110101010110110011010111011010101011011001101011101101010101101100110101110110101011010101011011001101010110101010110110011010101101010101101100110101011010101011011001101011011101101010101101101110110101010110110111011010101011011011101101010101101101110110101010110101011001101011011001011001101011011001011001101011011001011001101011011001011001101011011000110101101100101100110101101100011010110110010110011010110110001101011011001011001101011011010110011010110110101100110101101101011001101011011010110011010110110101100110101101101011001101011011010110101100110101101101011001011010110011010110110101100101101011001101011011010110010110101100110101101101011000101101101011001011010110010110110101100101101011001011011010110010110101100101101101011001011010110101100101101011001101101100101101011001101101100101101011001101101100101101011001101101100101101011001101
ASIAN DEVELOPMENT BANK
COMMON UNDERSTANDING ON INTERNATIONAL STANDARDS AND GATEWAYS FOR CENTRAL SECURITIES DEPOSITORY AND REAL-TIME GROSS SETTLEMENT (CSD–RTGS) LINKAGESCross-Border Settlement Infrastructure ForumMAY 2019
ASIAN DEVELOPMENT BANK
COMMON UNDERSTANDING ON INTERNATIONAL STANDARDS AND GATEWAYS FOR CENTRAL SECURITIES DEPOSITORY AND REAL-TIME GROSS SETTLEMENT (CSD–RTGS) LINKAGESCross-Border Settlement Infrastructure ForumMAY 2019
Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2019 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org Some rights reserved. Published in 2019. ISBN 978-92-9261-612-0 (print), 978-92-9261-613-7 (electronic) Publication Stock No. TCS190144-2 DOI: http://dx.doi.org/10.22617/TCS190144-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “economy” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/ By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact pubsmarketing@adb.org if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. Notes: In this report, international standards for naming conventions—International Organization for Standardization (ISO) 3166 for economy codes and ISO 4217 for currency codes—are used to reflect the discussions of the ASEAN+3 Bond Market Forum to promote and support the implementation of international standards in financial transactions in the region. ASEAN+3 comprises the Association of Southeast Asian Nations (ASEAN) plus the People’s Republic of China, Japan, and the Republic of Korea. ADB recognizes “Hong Kong” as Hong Kong, China; “Korea” as the Republic of Korea; “China” as the People’s Republic of China; and “Vietnam” as Viet Nam. The currencies of ASEAN+3 as defined in ISO 4217 are the Brunei dollar (BND), Cambodian riel (KHR), Chinese renminbi (CNY), Hong Kong dollar (HKD), Indonesian rupiah (IDR), Japanese yen (JPY), Korean won (KRW), Lao kip (LAK), Malaysian ringgit (MYR), Myanmar kyat (MMK), Philippine peso (PHP), Singapore dollar (SGD), Thai baht (THB), and Vietnamese dong (VND).
Contents
Tables and Figures v Acknowledgments vi Statement from the Chairs of the Cross-Border Settlement Infrastructure Forum vii Abbreviations viii Overview 1 PART 1: International Standards for CSD–RTGS Linkages 3 1 Introduction 3
2 International Standards to Be Used for CSD–RTGS Linkages 4 2.1 ISO 20022, for Messages 4
2.2 ISO 3166, for Country Codes 5
2.3 ISO 4217, for Currency Codes 5
2.4 ISO 6166, for Securities Numbering 5
2.5 ISO 9362, for Financial Institution Identification 6
2.6 ISO 8601, for Date and Time Format 8
3 Remaining Challenges 8 3.1 Identification of Cross-Border Messages 8
3.2 Other International Standards 9
3.3 Account-Numbering Conventions 9
4 Possible Opportunities 9
PART 2: User Requirements and Technical Specifications for Gateways for CSD–RTGS Linkages 12 1 Introduction and Background 12 2 Overview of CSD–RTGS Linkages 13
2.1 Cross-Border Delivery-versus-Payment Linkage 13
2.2 Cross-Border CSD Linkage 14
2.3 Payment-versus-Payment Linkage 15
Contents iv
3 Possible Requirements and Specifications for Gateways 16
3.1 Outline of User Requirements 16
3.2 Possible Technical Specifications 17
3.3 Interoperability through the Adoption of International Standards 18
3.4 Cross-Border Network Connecting CSD and RTGS Systems 18
3.5 Cross-Border Business Continuity Planning and Cybersecurity 19
3.6 Other Specifications 19
4 Conclusions 20 Appendixes
1 Possible Gateway Features 21 2 Basic Concept for Network Providers 24
References 27
Tables and Figures
Tables 1 ASEAN+3 Country Codes, Currency Codes, and National Numbering Agencies 6
2 BICFIs of Central Securities Depository and Real-Time Gross Settlement System
Operators in ASEAN+3 7
Figures 1 Structure of the Report 2
2 Central Securities Depository–Real-Time Gross Settlement Linkages Model 3
3 Financial Market Infrastructure Transformation into a Regional Settlement Intermediary 10
4 Central Securities Depository and Real-Time Gross Settlement Gateway Function 12
5 Cross-Border Delivery-versus-Payment 14
6 Cross-Border CSD Linkage 15
7 Payment-versus-Payment Linkage 15
8 Cross-Border Connections 19
A1.1 Possible Gateway Configuration 21
A1.2 Gateway Security 23
A2 Network Provider 24
Acknowledgments
The Asian Development Bank (ADB), as Secretariat of the Cross-Border Settlement Infrastructure
Forum (CSIF), would like to express its sincere appreciation to the chair and vice-chair for guiding the
discussion, and to members and observers for providing inputs to the Common Understanding on
International Standards and Gateways for Central Securities Depository and Real-Time Gross Settlement
(CSD–RTGS) Linkages.
The report has two objectives: (i) to create a common understanding among CSIF members on
international standards for those linkages, and (ii) establish general user requirements and technical
specifications for gateways for the linkages. The report should be regarded as a crystallization of regional
collaborative efforts and knowledge toward more harmonized and integrated bond markets among
members of the Association of Southeast Asian Nations as well as the People’s Republic of China, Japan,
and the Republic of Korea—known collectively as ASEAN+3—through CSIF activities. Without the strong
support and cooperation of CSIF members and observing authorities in the region, this report would not
have been published.
This report was prepared by the ADB Secretariat for the CSIF—composed of Satoru Yamadera,
Kosintr Puongsophol, Jae-Hyun Choi, and Taiji Inui—to foster a common understanding among CSIF
members and observers.
In the drafting of this report, the CSIF chairs and members provided valuable advice and support
to the ADB Secretariat. The European Central Bank also shared its knowledge of interlinking financial
market infrastructure in Europe. The ADB Secretariat expresses its sincere gratitude to the CSIF
members and observers.
The views expressed here are those of the Secretariat and do not necessary represent the official
views of ADB or any institution that has participated in the CSIF as a member or observer.
Statement from the Chairs of the Cross-Border Settlement Infrastructure Forum
As chairs of the Cross-Border Settlement Infrastructure Forum (CSIF), we would like to express
our heartfelt gratitude to the CSIF members and observers for their contribution to the success of this
initiative. The Common Understanding on International Standards and Gateways for Central Securities
Depository and Real-Time Gross Settlement (CSD–RTGS) Linkages will undoubtedly help the CSIF
members plan for cross-border CSD–RTGS linkages on the basis of the experience gained from the pilot
linkage between the Bank of Japan and the Hong Kong Monetary Authority. As operators of financial
market infrastructure, we must have systems that are linked and interoperable.
We look forward to the continued support of the CSIF members and observers for this initiative.
This report is only the first stage in the process of bringing the CSIF objectives to fruition.
Soulysak Thamnuvong
Chair, CSIF
Acting Director General, Bank of Lao PDR
Seung-Kwon Lee
Vice-Chair, CSIF
Director, Korea Securities Depository
Abbreviations
ABMI Asian Bond Markets Initiative
ASEAN+3 Association of Southeast Asian Nations plus the People’s Republic of China,
Japan, and the Republic of Korea
BIC Business Identifier Code
BICFI Business Identifier Code for Financial Institutions
BOJ Bank of Japan
CSD central securities depository
CSIF Cross-Border Settlement Infrastructure Forum
DVP delivery-versus-payment
FMI financial market infrastructure
GOE Asian Bond Markets Initiative Group of Experts
HKMA Hong Kong Monetary Authority
IP-VPN Internet Protocol Virtual Private Network
ISIN International Securities Identification Number
ISO International Organization for Standardization
LCY local currency
NNA national numbering agency
PVP payment-versus-payment
RSI regional settlement intermediary
RTGS real-time gross settlement
SOAP Simple Object Access Protocol
TCP/IP Transmission Control Protocol/Internet Protocol
XML eXtensible Markup Language
Overview
The Asian Bond Markets Initiative (ABMI) Task Force 4 has conducted several studies on
establishing a regional settlement intermediary (RSI), including one carried out by the Group of Experts
(GOE) and a subsequent reassessment of the GOE’s legal and business feasibility study. The
Cross-Border Settlement Infrastructure Forum (CSIF) was established at the meeting of finance ministers
and central bank governors of the Association of Southeast Asian Nations (ASEAN), the People’s
Republic of China, Japan, and the Republic of Korea—collectively known as ASEAN+3—in May 2013 in
Delhi, India, to further the work of the GOE.
The CSIF was mandated to facilitate discussion on the improvement of cross-border bond and
cash settlement infrastructure in the ASEAN+3 region, including the possibility of establishing an RSI. The
CSIF aims to (i) enhance dialogue among policy makers and operators of bond and cash settlement
infrastructure in the region; (ii) assess existing settlement infrastructure in ASEAN+3, and identify
comprehensive issues and requirements to facilitate the development of cross-border bond and cash
settlement infrastructure in the region; (iii) draw up common basic principles for cross-border bond and
cash settlement infrastructure with a medium- and long-term perspective; and (iv) discuss prospective
models, an overall road map, and an implementation plan for the establishment of cross-border bond and
cash settlement infrastructure in the region. Central banks and national central securities depositories
(CSDs) in ASEAN+3 participate in the CSIF on a voluntary basis. The CSIF reports to ABMI Task Force 4.
With the publication of the Basic Principles on Establishing a Regional Settlement Intermediary
and Next Steps Forward in May 2014, it was agreed that CSD and real-time gross settlement (CSD–
RTGS) linkages, which bilaterally connect domestic CSD and RTGS systems, would enable the
settlement of local bonds via delivery-versus-payment (DVP) with central-bank money to ensure the
safety of settlement as well as compliance with international standards and cost-efficiency. As CSIF
members work toward realizing CSD–RTGS linkages, issues related to international standards and
gateways for CSD–RTGS linkages have been identified as important elements in the implementation of
bilateral linkages, even for late adopters of CSD and RTGS systems.
2 Common Understanding on International Standards and Gateways for Central Securities Depository–Real-Time Gross Settlement (CSD–RTGS) Linkages
This report contains a set of basic, common understandings on those international standards and
gateways. It discusses the interoperability of CSD–RTGS linkages in two parts. Part 1 deals with
international standards for CSD–RTGS linkages and Part 2 deals with user requirements and technical
specifications for gateways for CSD–RTGS linkages.
Part 1 relates mainly to standards for the CSD and RTGS systems themselves. The discussion in
Part 2 pertains to the gateways connecting those CSD and RTGS systems (Figure 1).
Figure 1: Structure of the Report
CSD = central securities depository, GW = gateway, RTGS = real-time gross settlement. Source: Cross-Border Settlement Infrastructure Forum.
Importantly, this set of common understandings may be reviewed and updated by the CSIF
members after the actual implementation of any CSD–RTGS linkages.
Participant CentralBankRTGS
CentralBankRTGS
CentralBankRTGS
CSD
CSD
CSD
GW
GW
Country/Economy B
Country/Economy C
Country/Economy A
CSD
Part 1: International Standards for CSD–RTGS Linkages
Part 2: User Requirements and Technical Specificationsfor GW for CSD–RTGS Linkages
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
GW
GW GW
PART 1 International Standards for CSD–RTGS
Linkages 1 Introduction
Part 1 is intended to foster a common understanding on international standards for
CSD–RTGS linkages in ASEAN+3. In this report, the linkages fall into three categories:
(i) cross-border DVP linkage, (ii) cross-border CSD linkage, and (iii) payment-versus-payment
(PVP) linkage. The CSD–RTGS linkages are shown in Figure 2.
Figure 2: Central Securities Depository–Real-Time Gross Settlement Linkages Model
CSD = central securities depository, DVP = delivery-versus-payment, PVP = payment-versus-payment, RTGS = real-time gross settlement. Source: Cross-Border Settlement Infrastructure Forum.
With respect to the actual implementation of CSD–RTGS linkages, the following
initiatives have already been implemented or are in preparatory stages:
(i) Bond market access between the People’s Republic of China (PRC) and
Hong Kong, China (Bond Connect), connecting the China Central Depository &
Clearing Co., Ltd. and the Shanghai Clearing House in the PRC with the Central
Cross-Border LinkCountry A
Participant
Participant ParticipantCSD (A) CSD (B)
Central BankRTGS (A)
Central BankRTGS (B)
Participant
Country B
PVP
CSD Link
Cross-BorderDVP
DVPDVP
4 Common Understanding on International Standards and Gateways for Central Securities Depository–Real-Time Gross Settlement (CSD–RTGS) Linkages
Moneymarkets Unit (CMU), established in 1990 by the Hong Kong Monetary
Authority (HKMA) and operated by the HKMA.1
(ii) The planned implementation of cross-border DVP linkages by the Bank of Japan (BOJ)
and HKMA, connecting the BOJ’s Financial Network System (BOJ-NET) Japanese
Government Bond services to the Hong Kong Dollar Clearing House Automated Transfer
System (HKD CHATS), to enable DVP settlement of Japanese government bonds and
Hong Kong dollars. At this juncture, the BOJ and the HKMA intend to implement
cross-border DVP links, connected directly to one another, around the spring of 2021.2
However, this report is not based on actual implementation, as system development is still
ongoing. Therefore, the common understanding on international standards for CSD–RTGS linkages
should be seen as part of a process of establishing a basic knowledge of technical standards and
experience sharing, and therefore not mandatory or binding.
2 International Standards to Be Used for CSD–RTGS Linkages
The following international standards will be used for the CSD–RTGS linkages:
(i) International Organization for Standardization (ISO) 20022, for messages;
(ii) ISO 3166, for country codes;
(iii) ISO 4217, for currency codes;
(iv) ISO 6166, for securities numbering;
(v) ISO 9362, for financial institution identification; and
(vi) ISO 8601, for date and time format.
These individual standards are discussed below.
2.1 ISO 20022, for Messages
The following basic concepts may be adopted to clarify and simplify the implementation
objectives:
1 For details, see http://www.chinabondconnect.com/en/index.htm. 2 For details, see https://www.boj.or.jp/en/paym/bojnet/crossborder/index.htm/.
Part 1: International Standards for CSD–RTGS Linkages 5
(i) Mandatory items in the ISO 20022 message definition report are also mandatory
requirements for CSD–RTGS linkage messages.
(ii) Optional message items that may be used for cross-border connections are to be
standardized to the extent reasonably possible.
These provisions do not cover specific message items to be used (i) only for specific bilateral
linkages, or (ii) only for domestic purposes. Also, ISO 20022 message items that are already in use or
that are set to be used in actual implementation must be honored.
2.2 ISO 3166, for Country Codes
ISO 3166 is the international standard for country codes and their subdivisions. It defines
internationally recognized codes of letters or numbers, or both, that can be used when referring to
countries and country subdivisions. ISO 3166 is regularly updated to reflect changes in country names
and subdivisions. These changes are made by the ISO 3166 Maintenance Agency. However, ISO 3166
does not define the names of countries; this information comes from United Nations sources. The
two-letter country codes for the ASEAN+3 economies under ISO 3166 are shown in Table 1.
2.3 ISO 4217, for Currency Codes
Currency codes must be valid and active. These are registered with the ISO 4217 Maintenance
Agency and consist of three contiguous letters.3 The currency codes for the ASEAN+3 economies under
ISO 4217 are listed in Table 1.
2.4 ISO 6166, for Securities Numbering
The International Securities Identification Number (ISIN) is a unique 12-character alphanumeric
code defined in ISO 6166. Each country’s national numbering agency (NNA) assigns ISINs to securities
issued by that country. The NNAs for ASEAN+3 economies are shown in Table 1. The Association of
National Numbering Agencies (ANNA) is a global association of NNAs with a common mission.4
3 The maintenance agency is SIX Interbank Clearing, on behalf of the Swiss Association for Standardization. 4 For details, see http://www.anna-web.org/.
6 Common Understanding on International Standards and Gateways for Central Securities Depository–Real-Time Gross Settlement (CSD–RTGS) Linkages
Table 1: ASEAN+3 Country Codes, Currency Codes, and National Numbering Agencies
Country
Country
Code
Currency
Code National Numbering Agency (NNA)
Brunei
Darussalam
BN BND Autoriti Monetari Brunei Darussalam (AMBD)
Cambodia KH KHR n.a.
PRC CN CNY China Securities Industry Standardization Technical
Committee (CSISC)
Hong Kong, China HK HKD Hong Kong Exchanges and Clearing Ltd. (HKEX)
Indonesia ID IDR Indonesia Central Securities Depository (KSEI)
Japan JP JPY Tokyo Stock Exchange (JPX)
Republic of Korea KR KRW Korea Exchange (KRX)
Lao PDR LA LAK n.a.
Malaysia MY MYR Bursa Malaysia Berhad
Myanmar MM MMK n.a.
Philippines PH PHP n.a.
Singapore SG SGD Singapore Exchange Limited (SGX)
Thailand TH THB Thailand Securities Depository Co., Ltd. (TSD)
Viet Nam VN VND Vietnam Securities Depository (VSD)
ASEAN+3 = Association of Southeast Asian Nations plus the People’s Republic of China, Japan, and the Republic of Korea; Lao PDR = Lao People’s Democratic Republic; n.a. = not applicable, PRC = People’s Republic of China. Source: Cross-Border Settlement Infrastructure Forum.
Each ISIN comprises a two-alphabetic-character prefix for the country of issue, followed by the
country’s eight-digit National Securities Identifying Number (NSIN) and a check digit. For example, a bond
issued in the PRC might be assigned an ISIN of CN088888889.
2.5 ISO 9362, for Financial Institution Identification
A Business Identifier Code for Financial Institutions (BICFI) is registered by the ISO 9362
Registration Authority in the Business Identifier Code (BIC) directory.5 The BIC is an eight-character
“business party identifier,” consisting of the business party prefix (four alphanumeric characters), the
5 The registration authority is the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Part 1: International Standards for CSD–RTGS Linkages 7
country code as defined in ISO 3166-1 (two alphabetic), and the business party suffix (two
alphanumeric). The branch identifier, a three-character optional element used to identify specific
locations, departments, services, or units of the same business party, can supplement the BIC.
Table 2: BICFIs of Central Securities Depository and Real-Time Gross Settlement System Operators in ASEAN+3
Country Code
BICFI (eight-character) Name of Institution
Country Code
BICFI (eight-character) Name of Institution
BN AMBDBNBB Autoriti Monetari Brunei Darussalam (AMBD)
LA LPDRLALA Bank of the Lao PDR (BOL)
CN PBOCCNBJ People’s Bank of China (PBOC)
MM CBMYMMMY Central Bank of Myanmar (CBM)
NDCCCNB1 China Central Depository & Clearing Co., Ltd. (CCDC)
MY BNMAMY2K Bank Negara Malaysia (BNM)
CSDACNB1 China Securities Depository and Clearing Corporation Limited (CSDC)
PH PHCBPHMC PHCBMCMM
Bangko Sentral ng Pilipinas (BSP)
CHFMCNSH Shanghai Clearing House (SHCH)
BUTRPHM1 Bureau of the Treasury (BTr)
HK HKMAHKHC Hong Kong Monetary Authority (HKMA)
PHCDPHM1 Philippine Depository & Trust Corp. (PDTC)
ID INDOIDJA Bank Indonesia (BI) ASDBPHMM Asian Development Bank (ADB)
KSEIIDJA Indonesia Central Securities Depository (KSEI)
SG MASGSGSG MASGSGSM
Monetary Authority of Singapore (MAS)
JP BOJPJPJT Bank of Japan (BOJ) CDPLSGSG The Central Depository (Pte) Limited (CDP)
JJSDJPJT Japan Securities Depository Center, Inc. (JASDEC)
TH BOTHTHB1 Bank of Thailand (BOT)
KH NCAMKHPP National Bank of Cambodia (NBC)
TSDCTHBK Thailand Securities Depository Co., Ltd. (TSD)
KR BOKRKRSE BOKRKRST
Bank of Korea (BOK) VN NABVVNV1 STBVVNVX
State Bank of Vietnam (SBV)
KSDCKRSE Korea Securities Depository (KSD)
VISDVNV1 Vietnam Securities Depository (VSD)
ASEAN+3 = Association of Southeast Asian Nations plus the People’s Republic of China, Japan, and the Republic of Korea; BICFI = Business Identifier Code for Financial Institutions. Source: Results of International Organization for Standardization (ISO) Business Identifier Code (BIC) search by ADB consultant.
8 Common Understanding on International Standards and Gateways for Central Securities Depository–Real-Time Gross Settlement (CSD–RTGS) Linkages
2.6 ISO 8601, for Date and Time Format
The ISO date is defined as a particular point in the progression of time in a calendar year,
expressed in the YYYY-MM-DD format. This representation is defined in XML6 Schema Part 2: Datatypes
Second Edition—W3C Recommendation (28 October 2004), which is aligned with ISO 8601.
Besides the mandatory date component, there is a mandatory time component, expressed in
Coordinated Universal Time (UTC) format (YYYY-MM-DDThh:mm:ss.sssZ), in local time format with a
UTC offset (YYYY-MM-DDThh:mm:ss.sss+/-hh:mm), or in local time format with no UTC offset
(YYYY-MM-DDThh:mm:ss.sss). Each calendar day starts at 00:00:00 and ends at 24:00:00.
3 Remaining Challenges
The challenges faced in establishing CSD–RTGS linkages other than those associated with
international standards may be more serious. However, the implementation of international standards
should not be overlooked. Some challenges in this regard are discussed below.
3.1 Identification of Cross-Border Messages Identifying cross-border messages originating in different economies is one of the important and
difficult challenges associated with the consistent adoption of key ISO 20022 messages. Some message identifiers, such as payments clearing and settlement (PACS) and securities settlement (SESE) messages, can be used for CSD–RTGS linkages. The use of such identifiers can differ between economies.
The following are some possible identifiers for cross-border messages:
TransactionIdentification <TxId>, TradeIdentification <TradId>, ProcessingIdentification <PregId>, AccountOwnerTransactionIdentification <AcctOnrTxId>, AccountServicerTransactionIdentification <AcctSvcrTxId>, MarketInfrastructureTransactionIdentification <MktInfrstrctrTxId>, ProcessorTransactionIdentification <PrcrTxId>, CommonIdentification <CmonId>, MessageIdentification <MsgId>, OriginalMessageIdentification <OrgnlMsgId>, OriginalTransactionIdentification <TxId>, InstructionIdentification <InstId>, EndToEndIdentification <EndToEndId>
6 eXtensible Markup Language.
Part 1: International Standards for CSD–RTGS Linkages 9
TransactionIdentification <TxId> may be used as a unique reference for CSD–RTGS linkage
messages. Also, considering the nature of CSD–RTGS linkages between financial market infrastructure
(FMI), MarketInfrastructureTransactionIdentification <MktInfrstrctrTxId> may be used as a unique
cross-border reference, linking the message item for identification with some other identification as a
reference for CSD–RTGS linkages.
3.2 Other International Standards
Other international standards such as ISO 13616 (International Bank Account Number, or IBAN) and
ISO 17442 (Legal Entity Identifier, or LEI) are not used as regional standards in ASEAN+3. That said, there is
some momentum toward adopting IBAN as a standard for identifying bank account numbers and LEI as a
standard for the clear and unique identification of legal entities such as companies and funds participating in
financial transactions. Such new international standards may need to be monitored to maintain interoperability
with FMI in other regions as far as possible.
3.3 Account-Numbering Conventions
Account-numbering conventions—for example, using only alphanumeric characters or not
allowing spaces between numbers and characters—need to be discussed. As ISO 20022 may support
the use of local letters and characters in an additional data field, such use may be considered in the
future.
4 Possible Opportunities
CSD–RTGS linkages are expected to make financial markets in the ASEAN+3 region more robust, stable, efficient, and effective in channeling savings into productive uses. Such linkages will also support the development of local currency (LCY) bond markets in the region. Amid the challenges of globalization, securing interoperability based on international standards is one of the most important issues involved in establishing CSD–RTGS linkages between existing or future FMI in ASEAN+3, where demand for cross-border financial transactions (including securities settlement) is growing. Linking FMI across the region should be a realistic initiative of the highest priority. It is important as well to secure interoperability with other regions, such as Europe and North America, despite differences in operating times, market practices, legal frameworks, and other aspects. Already, connections exist between international CSDs in other regions and some CSDs and RTGS systems in ASEAN+3.
10 Common Understanding on International Standards and Gateways for Central Securities Depository–Real-Time Gross Settlement (CSD–RTGS) Linkages
An international framework based on current international and regional frameworks that
addresses the interoperability of FMI from a wider perspective may promote the development and adoption of harmonized and standardized payment and settlement systems, including global networks.
Standardization will bring into existence a regional settlement intermediary—the long-term goal of the region. For standardization to be achieved, each ASEAN+3 market must first implement international standards and participate actively in ISO discussions. The ASEAN+3 markets must then consider how the practices in individual country markets can be made regionally interoperable. Through such regional discussions, together with the implementation of the CSD–RTGS linkages, FMI in the region will be transformed into a secure, stable, and efficient regional settlement intermediary (Figure 3).
The long-term goals for FMI in ASEAN+3 include: (i) deeper and more liquid bond markets; (ii) the treatment of public debt in each ASEAN+3 economy as an asset of the people in the
region; and (iii) interoperability of CSD–RTGS linkages, not only within ASEAN+3 but also between
ASEAN+3 and other regions.7
Figure 3: Financial Market Infrastructure Transformation into a Regional Settlement Intermediary
ASEAN+3 = Association of Southeast Asian Nations plus the People’s Republic of China, Japan, and the Republic of Korea; CSD = central securities depository; ISO = International Organization for Standardization; RTGS = real-time gross settlement; STP = straight-through processing. Source: ADB.
7 To enhance interoperability, market protection measures for specific markets, including capital and cash controls, may have to be
retained at the discretion of authorities in those markets.
Implementing the Most Secure, Stable, and EfficientRegional Settlement Intermediary (RSI)Goal
Promoting ISO 20022
Harmonizing Market PracticesHarmonization and
Standardizationof Bond Settlement
Systemsin ASEAN+3
STP from Trade to Settlementof Securities Transactions
Cross-Border CSD–RTGSLinkages
Specifying StandardSettlement Processes
Dealing with Interest Paymentand Tax-Related Issues
Promoting International Standardsof Coding and Numbering
Implementationin Each Economy
Bond Market Infrastructure Compliantwith International Standards
Contribution to InternationalStandard Management
Part 1: International Standards for CSD–RTGS Linkages 11
In line with these long-term goals, the CSIF continues to facilitate discussions on the
improvement of cross-border bond and cash settlement infrastructure in the region, including the
possibility of establishing an RSI. Initiatives are being undertaken to implement CSD–RTGS linkages. The
road map for establishing a regional settlement intermediary in ASEAN+3, which was discussed in the
Progress Report on Establishing a Regional Settlement Intermediary and Next Steps (2015), is gradually
being realized.8
8 ADB. 2015. Progress Report on Establishing a Regional Settlement Intermediary and Next Steps. Manila.
PART 2 User Requirements and Technical Specifications for Gateways for CSD–RTGS Linkages
1 Introduction and Background
To the CSIF members, establishing bilateral and flexible CSD–RTGS linkages among existing
FMI would be an achievable model for the formation of a regional settlement intermediary (RSI) in the
short and medium term.
Figure 4: Central Securities Depository and Real-Time Gross Settlement Gateway Function
CSD = central securities depository, GW = gateway, RTGS = real-time gross settlement. Source: CSIF.
CSD–RTGS linkages can connect FMI in ASEAN+3, particularly CSD and RTGS systems,
bilaterally by using gateways, with technical specifications designed to ensure interoperability across FMI
(Figure 4).
Participant CentralBankRTGS
CentralBankRTGS
CentralBankRTGS
CSD
CSD
CSD
GW
GW GW
Country/Economy B
Country/Economy C
Country/Economy A
CSD
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
A small device for• network connection• message conversion
A standardizedtext format is criticalto lowering the initial
cost of GW
GW
GW
Part 2: User Requirements and Technical Specifications for Gateways for CSD–RTGS Linkages 13
This part of the report is intended to foster a common understanding on the user requirements
and technical specifications of gateways for CSD–RTGS linkages. This document may also be used as a
draft request for information for CSD–RTGS linkage development. The common understanding is
therefore not mandatory or binding on any of the CSIF members.
2 Overview of CSD–RTGS Linkages
CSD–RTGS linkages connect RTGS and national CSD systems in ASEAN+3 (see Figure 2).
Owners and operators of the CSD–RTGS linkages are the central banks and national CSDs of securities
in ASEAN+3 member economies. The CSD–RTGS linkages are categorized into three types:
(i) cross-border DVP linkages, (ii) cross-border CSD linkages, and (iii) PVP linkages.9
Transactions settled in the RTGS systems are in the following regional currencies: Brunei dollar
(BND), Cambodian riel (KHR), Chinese yuan (CNY), Hong Kong dollar (HKD), Indonesian rupiah (IDR),
Japanese yen (JPY), Korean won (KRW), Lao kip (LAK), Malaysian ringgit (MYR), Myanmar kyat (MMK),
Philippine peso (PHP), Singapore dollar (SGD), Thai baht (THB), and Vietnamese dong (VND).
Bonds settled through CSD–RTGS linkages do not necessarily have to be denominated in the
local currencies of the 14 ASEAN+3 economies.
2.1 Cross-Border Delivery-versus-Payment Linkage
A cross-border DVP linkage connects a CSD system in an economy with an RTGS system in
another economy, to achieve DVP settlement for cross-currency repurchase agreements or foreign
currency–denominated bonds.
For example, the sell side and the buy side of a bond are both located in the same economy
(economy B) where investor CSD is located. But in a cash-leg payment, the banks are located in a
different economy (economy A) from the CSD participants. The bond of economy B is settled in the local
currency of economy A through cross-border DVP. An example of cross-border DVP linkage is shown
in Figure 5.
9 For details, refer to ADB’s Progress Report on Establishing a Regional Settlement Intermediary and Next Steps (2015).
14 Common Understanding on International Standards and Gateways for Central Securities Depository–Real-Time Gross Settlement (CSD–RTGS) Linkages
Figure 5: Cross-Border Delivery-versus-Payment
a/c = account, corres. = correspondent, CSD = central securities depository, DVP = delivery-versus-payment, RTGS = real-time gross settlement. Source: Cross-Border Settlement Infrastructure Forum.
2.2 Cross-Border CSD Linkage
A CSD–CSD linkage connects an issuer CSD and an investor CSD to provide an access channel
for investments in securities in issuer CSDs (Figure 6).
The sell side and the buy side are in different economies. The buy side is located on the investor CSD side (economy B). The issuer CSD allows the investor CSD to open an omnibus account.
Participating CSDs assume one of two distinct roles. As issuer CSDs, they provide services to other participating CSDs for the securities for which they are the ultimate depository. As investor CSDs, they provide their customers with CSD services in markets other than their own by using the services provided by the issuer CSDs. In each case, the service is provided by the issuer CSD to the investor CSD, and then by the investor CSD to its participants.
The target markets for investor CSDs are those that need full settlement capability across a large set of regional markets. The retail and private banks in the markets of the investor CSDs, as well as local and regional custodian banks, could fit this profile.
Cash settlement for the local currency in each economy is to be effected by the central bank’s RTGS system. Cash settlement for currencies other than the local currency in each economy engaged by a designated (private) settlement bank is not included in this scope.
Country/Economy A Country/Economy BBank A a/c
↓bondBank B a/c
Bank Y a/c↓cash
Bank X a/c
Bank A(sell side)
Bank B(buy side)
Investor CSD (B)
RTGS (A)Bank Xcorres. bank
of Bank A
Bank Ycorres. bank
of Bank B
Cross-Border
Cross-Border DVPC
ross
-Bor
der
GW
GW
Part 2: User Requirements and Technical Specifications for Gateways for CSD–RTGS Linkages 15
Figure 6: Cross-Border CSD Linkage
a/c = account, corres. = correspondent, CSD = central securities depository, GW = gateway, RTGS = real-time gross settlement. Note: Bank Y is located in either economy A or economy B. Source: Cross-Border Settlement Infrastructure Forum.
2.3 Payment-versus-Payment Linkage
An RTGS–RTGS linkage connects two RTGS systems in different economies to achieve PVP
settlement for foreign exchange transactions (Figure 7).
Figure 7: Payment-versus-Payment Linkage
a/c = account, corres. = correspondent, GW = gateway, LCY = local currency, PVP = payment-versus-payment, RTGS = real-time gross settlement. Source: Cross-Border Settlement Infrastructure Forum.
Country/Economy A Country/Economy B
Bank A a/c↓bond
CSD (B) a/c
CSD (B) a/c↓bond
Bank B a/c
Bank Y a/c↓cash
Bank X a/c
Bank A(sell side)
Issuer CSD (A)Matching Investor CSD (B)
Bank B(buy side)
Central BankRTGS (A)Bank X
corres. bankof Bank A
Cro
ss-B
orde
r
Bank Ycorres. bankof CSD (B)
Bank Zcorres. bank
of Bank B
GW GW
DVP
CSD Link
Cross-Border
Country/Economy A Country/Economy B
Bank A a/c↓
Bank Y a/c
Bank B a/c↓
Bank X a/c
Bank ASells LCY A
Bank BSells LCY B
Central BankRTGS (A)
Central BankRTGS (B)
Bank Ycorres. bank
of Bank B
Bank Xcorres. bank
of Bank A
Cro
ss-B
orde
r
GW GWPVP Link
16 Common Understanding on International Standards and Gateways for Central Securities Depository–Real-Time Gross Settlement (CSD–RTGS) Linkages
In Figure 7, local currency A (LCY A) is sold and bought in economy A, and local currency B
(LCY B) is sold and bought in economy B. Linking RTGS systems in economy A and economy B will
enable the simultaneous settlement of LCY A and LCY B with no principal risk.
3 Possible Requirements and Specifications for the Gateways
The gateways of CSD–RTGS linkages will be designed to connect CSD and RTGS systems in
ASEAN+3 efficiently, effectively, securely, and safely. Each of these gateways will be owned and operated
by the CSD or by RTGS owners and operators, or both. Individual CSD and RTGS operators are
therefore responsible for their own gateways.
3.1 Outline of User Requirements
Possible general user requirements and technical specifications are as follows:
(i) Sufficient level of security, reliability, and availability for bilateral FMI connections in the
region.
(a) To ensure network security and redundancy equivalent across FMI, FMI must be
connected with each other through the gateways by a secure network such as a
leased line and secured by sufficient measures such as an Internet Protocol
Virtual Private Network (IP-VPN).
i. Security. To prevent information leakage, tampering, and repudiation,
messages, including information sent through the network, should be
encrypted and marked with a digital signature.
ii. Reliability. To ensure the reliability of connections between CSD and
RTGS systems, message sequencing, retransmission, and idempotency
should be adopted.
(b) Duplication of gateway platforms for backup capability (redundancy).
i. Availability. To enhance the availability of gateways, active–active or
active–standby configuration for gateways should be adopted.
(ii) Measures implemented to avoid negative impact such as counterparty failures and
calamities.
(a) Individual message instructions are to be processed item by item
(message-oriented).
Part 2: User Requirements and Technical Specifications for Gateways for CSD–RTGS Linkages 17
(b) Appropriate measures to prevent negative impact from counterparties need to be
implemented. Criteria for choosing network providers need to be specified.
(iii) Interoperability when connecting FMI in ASEAN+3 bilaterally. This includes
(a) adopting international standards for technical specifications to connect CSD and
RTGS systems within the region, and
(b) implementing the specifications with expandability and flexibility to enable
gradual participation in the linkages by FMI ready to be connected with each
other.
(iv) Functions converting ISO 20022 (ASEAN+3) with ISO 20022 (local standard of each
economy).
(a) Mandatory message items of ISO 20022 are to be accepted as mandatory
message items with the same definition in all ASEAN+3 economies.
(b) Optional message items of ISO 20022 for a local economy may be different from
those of another economy or the ASEAN+3 standard, but they need to be
standardized to the extent reasonably possible.
(c) Not only message items but also message flows may differ between economies
and need to be harmonized to the extent reasonably possible to absorb the
difference by means of the gateways.
(v) Message identification (reference) that can uniquely identify each message for
end-to-end CSD–RTGS linkage, even for messages transferred across an economy. An
application-based, bilateral, unique, and sequential reference number (temporarily named
“CSD–RTGS interlinking reference”) may be introduced.
3.2 Possible Technical Specifications
Technologies and products that are available in all the ASEAN+3 economies or will be available in
the near future (possibly around 2020) will be adopted.
In order to share a common image of the gateway, possible functions are as follows:
(i) Communication protocol:
(a) With respect to the standard communication protocol for CSD-RTGS linkages,
Transmission Control Protocol/Internet Protocol (TCP/IP) is to be adopted since
this is already the standard communication protocol in ASEAN+3 and has been
adopted by all FMI in the region.
18 Common Understanding on International Standards and Gateways for Central Securities Depository–Real-Time Gross Settlement (CSD–RTGS) Linkages
(b) With respect to the communication interface, a loosely connecting interface such
as Simple Object Access Protocol (SOAP) is to be adopted.10
(ii) Message format. eXtensible Markup Language (XML), which is already widely accepted,
is to be used. With respect to message types, ISO 20022–compatible messages are to
be used in principle.
(iii) Character code set. Unicode (UTF-8) is to be used as character code set.
An example of a gateway is shown in Appendix 1.
3.3 Interoperability through the Adoption of International Standards
The adoption of the international standards discussed in Part 1, Section 2, of this report will
secure interoperability between CSD and RTGS systems in ASEAN+3.
(i) ISO 20022 for message standard
(ii) ISO 9362 (BICFI) for financial institution identification
(iii) ISO 6166 (ISIN) for securities numbering
(iv) ISO 3166-1 for country code
(v) ISO 4217 for currency code
(vi) ISO 8601 date and time
3.4 Cross-Border Network Connecting CSD and RTGS Systems
Gateways for CSD–RTGS linkages are to be connected to each other bilaterally by commonly
used technological measures such as IP-VPN. Network providers that are widely used by CSDs and
central banks may also be asked to provide the necessary network infrastructure.
Figure 8 shows the cross-border connections between gateways.
10 SOAP has a high level of conformity with XML.
Part 2: User Requirements and Technical Specifications for Gateways for CSD–RTGS Linkages 19
Figure 8: Cross-Border Connections
CSD = central securities depository, HTTPS = Hyper Text Transfer Protocol Secure, LAN = local area network, RTGS = real-time gross settlement, SOAP = originally knows as Simple Object Access Protocol, SWIFT = Society for Worldwide Interbank Financial Telecommunication, TCP/IP = Transmission Control Protocol/Internet Protocol, WAN = wide area network, XML = eXtensible Markup Language. Note: “Internet” refers to the Internet layer of TCP/IP protocol. As such, the internet may possibly not be used as a network for CSD-RTGS linkages. Source: Cross-Border Settlement Infrastructure Forum.
The basic concept for network providers is shown in Appendix 2.
3.5 Cross-Border Business Continuity Planning and Cybersecurity
Given the importance of sound and resilient linkages among regional CSD and RTGS operators,
CSIF members need to maintain the smooth operation of critical business functions and the resiliency of the CSD and RTGS systems against potential cyber risks. Gateways for CSD–RTGS linkages must satisfy the recommendations specified by the CSIF in Common Understanding on Cross-Border Business Continuity Planning and Cybersecurity.11
11 For details, refer to https://www.adb.org/publications/cross-border-business-continuity-planning-cybersecurity.
Economy A
UserApplication
UserApplication
SOAPHTTPS, etc.
TCP/IP
SWIFTNetAlliance
Access andGateway, etc.
SWIFTNetLink,
Router, etc.
ISO 20022XML
Application
Routers
Application
Transport Transport
Internet Internet Internet Internet
Link Link LinkLink
Economy B
LAN LANWAN
20 Common Understanding on International Standards and Gateways for Central Securities Depository–Real-Time Gross Settlement (CSD–RTGS) Linkages
3.6 Other Specifications
The following issues must be considered:
(i) Version change policy under international standards. ISO 20022 messages are to be
reviewed and versions updated annually. A version-updating policy needs to be agreed on between the parties that are connected by the relevant CSD–RTGS linkages.
(ii) System performance. Criteria for securing system performance will be discussed and
specified.
(iii) Change management for user requirements and technical specifications. User
requirements and technical specifications in this common understanding may be
reviewed and updated following the actual implementation of CSD–RTGS linkages in the
region.
4 Conclusions
CSD–RTGS linkages will be an important component of ASEAN+3 FMI as they will foster regional
capital market development and better services globally. Good implementation methods and market
practices in other regions should therefore be taken into consideration. The user requirements and
technical specifications set in this report would facilitate future discussion of the linkages, and hopefully
lead to their realization.
APPENDIX 1 Possible Gateway Features
A1.1 Possible Gateway Configuration
A gateway may consist of an external interface module, a core conversion module, an internal
interface module, and a common module (Figure A1.1).
Figure A1.1: Possible Gateway Configuration
CSD = central securities depository, GW = gateway, RTGS = real-time gross settlement. Note: Only gateways for cross-border CSD–RTGS linkages are shown here. Source: Cross-Border Settlement Infrastructure Forum.
(i) External interface module. An external interface module connects the gateway with the
counterparty gateway. The external interface module may have the following functions:
(a) TCP/IP interface for transport and internet layer;
(b) SOAP for user defined application layer, to absorb HTTP, HTTPS, SMTP, FTP, etc.;
(c) logical path management;
(d) message control functions with counterparty;
(e) interlinking message reference (sequential numbering) management;
(f) Status management with counterparty; and
(g) Any other functions to enable safe, secure, and efficient connection with
counterparty.
CSD
RTGS
GW for Cross-Border CSD–RTGS Linkage
Internalinterfacemodule
Coreconversion
module
Externalinterfacemodule
GW for Cross-BorderCSD–RTGS Linkage
(counterparty)
Common module
22 Appendix 1
(ii) Core conversion module. A core conversion module provides gateway functions
absorbing (converting) differences with ASEAN+3 standards:
(a) validation of messages/message items,
(b) message conversion functions between ISO 20022 (ASEAN+3) and ISO 20022
(local),
(c) transaction monitoring and business status management, and
(d) master data management.
(iii) Internal interface module. An internal interface module connects the gateway for
cross-border CSD–RTGS linkages with FMI (CSD and/or RTGS system) in each economy.
The gateway is to be planned, developed, and maintained under the discretion of the FMI:
(a) message conversion functions for XML with local message format
(b) message control functions with local CSD and/or RTGS system
(c) communication control functions with local systems
(iv) Common module. A common module provides the following common gateway functions
for cross-border CSD–RTGS linkages:
(a) system monitoring,
(b) system operation,
(c) error handling,
(d) logging, and
(e) status monitoring and management.
A1.2 Security
The security of gateways must be managed by each CSD and RTGS operator. Not only network
security but also physical and operational security must be implemented.
Considering the nature of Simple Object Access Protocol, public-key infrastructure may have to be
implemented. When CSD–RTGS linkages increase, technical specifications and user requirements for
public-key infrastructure, including credible third parties for certificate authority, must be discussed
(Figure A1.2).
Appendix 1 23
Figure A1.2: Gateway Security
TCP/IP = Transmission Control Protocol/Internet Protocol. Source: Cross-Border Settlement Infrastructure Forum.
Physical Security
Operational Security
Business applications (security measures)application gateway-level
security
router-level securityswitch-level security
upperlayerlowerlayer
Net
wor
kPr
ovid
ers
TCP/
IP L
ayer
transportinternet
link
APPENDIX 2 Basic Concept for Network Providers
Network providers will play a critical role in central securities depository–real-time gross
settlement (CSD–RTGS) linkages in ASEAN+3 (Figure A2). The network providers must therefore be
under the full control and management of CSD and RTGS operators in ASEAN+3.
Figure A2: Network Provider
CSD = central securities depository, GW = gateway, RTGS = real-time gross settlement. Source: Cross-Border Settlement Infrastructure Forum.
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
Participant
CSD
Country A
Gateway
Country B
Country CCSD
Gov.BondCSD
Corp.BondCSD
CentralBankRTGS
CentralBankRTGS
CentralBankRTGS
GW GW
GW
GWGW
Network Providers
Appendix 2 25
Points to be considered when selecting a network provider for cross-border CSD–RTGS linkages
in ASEAN+3 are listed below. The network providers should
(i) offer services with a high level of security, reliability, and availability;
(ii) have sufficient technological capability to support CSD–RTGS linkages;
(iii) offer services based on international standards, in particular ISO 20022;
(iv) have a stable management structure; and
(v) commit to an FMI with CSD–RTGS linkages and provide adequate services that will enable
FMI operators to offer a high level of service to their participants.
References
Asian Development Bank. 2014. Basic Principles on Establishing a Regional Settlement Intermediary and
Next Steps Forward—Cross-Border Settlement Infrastructure Forum. Manila. http://www.adb.org/
publications/basic-principles-establishing-regional-settlement-intermediary-next-steps.
———. 2015. Progress Report on Establishing a Regional Settlement Intermediary and Next Steps:
Implementing Central Securities Depository–Real-Time Gross Settlement Linkages in ASEAN+3—
Cross-Border Settlement Infrastructure Forum. http://www.adb.org/publications/progress-report-
establishing-regional-settlement-intermediary-and-next-steps.
———. 2018. Common Understanding on Cross-Border Business Continuity Planning and Cybersecurity—
Cross-Border Settlement Infrastructure Forum. Manila.
ASEAN+3 Bond Market Forum. 2013. ASEAN+3 Information on Transaction Flows and Settlement
Infrastructures: Sub-Forum 2 Phase 3 Report. Manila.
———. 2015. Harmonization and Standardization of Bond Market Infrastructures in ASEAN+3: Sub-Forum
2 Phase 3 Report. Manila.
ASIAN DEVELOPMENT BANK6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.org
Common Understanding on International Standards and Gateways for Central Securities Depository and Real-Time Gross Settlement (CSD–RTGS) Linkages
This publication was prepared for the Cross-Border Settlement Infrastructure Forum (CSIF) to support its efforts to establish central securities depository and real-time gross settlement linkages. It aims to build a common understanding among CSIF members about international standards and gateways for these linkages, including user requirements and technical specifications. The publication reflects the collaborative efforts currently underway to further harmonize and integrate bond markets among the ASEAN+3 economies.
About the Cross-Border Settlement Infrastructure Forum The Cross-Border Settlement Infrastructure Forum is composed of the central banks and central securities depositories of the Association of Southeast Asian Nations and Japan, the People’s Republic of China, and the Republic of Korea—known collectively as ASEAN+3. The CSIF is mandated to facilitate discussions to improve cross-border bond and cash settlement infrastructure in the ASEAN+3 region, including the possibility of establishing a regional settlement intermediary.
About the Asian Development Bank
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members —49 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.
Recommended